Roger Has a Portfolio Comprised of $8,000 of Stock a and $12,000

question 69

Multiple Choice

Roger has a portfolio comprised of $8,000 of stock A and $12,000 of stock B.What is the standard deviation of this portfolio?

• A) 4.67 percent
• B) 9.97 percent
• C) 7.23 percent
• D) 8.83 percent
• E) 10.42 percent

---

Definitions:

Demand

The quantity of a good or service that consumers are willing and able to purchase at various prices during a certain period of time.

Leakage

Any diversion of income from the domestic spending stream; includes saving, taxes, and imports.

Circular Flow

A model in economics that describes the movement of resources, goods and services, and money among different sectors in an economy.

Leakages-Injections Approach

An economic understanding and analysis of how savings, taxes, and imports (leakages) offset government spending, investments, and exports (injections) in the circular flow of income.